2007 raids on console mod-chippers result in indictments nearly 5 years later

10 people have been indicted for trafficking in console mod chips.

In a press release that went largely unnoticed last month (hat tip: GamePolitics), the Department of Justice announced indictments against ten individuals that were the subject of a nationwide raid targeting alleged video game console mod chip suppliers and sellers conducted nearly five years ago.

The ten individuals, who hail from Florida, New York, Texas, Ohio, Illinois, and Massachusetts, were the focus of "Operation Tangled Web," an industry-aided effort undertaken by the Immigration and Customs Enforcement agency in the summer of 2007. They've been charged with violating the Digital Millenium Copyright Act by trafficking in mod chips for the PlayStation 2, Nintendo Wii, Xbox, and Xbox 360, devices prosecutors say are "primarily designed to circumvent technological measures designed to effectively control access to a work copyrighted under Title 17 of the United States Code, for purposes of commercial advantage or private financial gain."

But defenders note that console mod chips have extensive legal uses as well, including the ability to let users run homebrew code, legal backups, and imported games on their hardware. For this reason, last year the Electronic Frontier Foundation formally requested (PDF) that the US Copyright Office exempt mod chips from DMCA enforcement, much as it has excepted "jailbroken" smartphones since 2010. A final ruling on that request is expected later this year.

Nice to see we have money to waste on this given our ever increasing debt thanks to continued deficit spending. Remind me again why it's the tax payers that need to be culpable for these costs, rather than the corporations that want this insane prosecution/persecution of modchip installers/resellers? Oh, that right. They want the cake and the ability to eat it as well.

Man, stuff like this makes me WANT the entertainment industry to go bankrupt. If I buy a console, I'll do whatever I want to it. If I pirate something, hit me for that, not for altering something that I legitimately own.

The nerve of people modifying hardware components that they purchased and own. Off with their heads!

Actually, the article seems to suggest that it's trafficking in mod chips that was pursued. So an individual user still seems to be free to modify the components they purchased and own.

At least in theory.

Quote:

Nice to see we have money to waste on this given our ever increasing debt thanks to continued deficit spending. Remind me again why it's the tax payers that need to be culpable for these costs, rather than the corporations that want this insane prosecution/persecution of modchip installers/resellers? Oh, that right. They want the cake and the ability to eat it as well.

Corporations aren't taxypaying entities? Also owned and run by taxpaying individuals? I mean, why do I, as a taxpayer, need to pay for the pursuit and prosecution of somebody who (say) vandalizes your car? Oh, because you're a taxpayer too?

Quote:

Ten indictments for selling parts to modify a TOY. Congratulations. That feeling you are experiencing right now is embarrassment.

Toy or no, we're talking about billions upon billions in revenue involved.

I think that they are not going far enough. They should prosecute all the independent contractors who renovate homes. Just imagine how many counterfeit renovations happen without providing the architect and the developer the money they so rightly deserve.

Oh lets not forget the automotive sector. All those punks who dare to accessorize their automobiles with unapproved head units tail pipes and so forth.....

Let's not forget the restaurants who in infringe on the recipes of others.....

Yeah yeah they are not exactly the same in your eyes but in mine they are. The console that I PURCHASED was intended to do more than what it is capable of now. Since I bought it the countless upgrades have reduced its functionality. I have yet to see a refund on my credit card. ALL the money I gave was legal tender without any strings attached. </rant>

Man, stuff like this makes me WANT the entertainment industry to go bankrupt. If I buy a console, I'll do whatever I want to it. If I pirate something, hit me for that, not for altering something that I legitimately own.

I agree completely. I hate the idea that ownership is such an outdated concept these days.

They got in trouble for selling the chips and modified consoles. If they just modified the consoles in their basement no one would be knocking on their door.MeNext you were the one who chose to install those updates onto your console, they were very clear as to what would happen if you did.

You may all feel its a waste of tax payer money, but these companies are paying much more in taxes than you are as well. It is the same reason I do not throw a fit that my tax money is going to schools when I do not have any kids. As for the person complaining that there is violent crimes being commuted, have you really thought about what the world would look like if only violent crime was investigated? Because that seems a lot like what you are suggesting you want.

I think it's legitimate for a company to be in the business of selling a platform, i.e. the hardware and software are bound together as the product. I'm pretty certain that these companies would not have been in the business of selling their platform had they not been able to profit off the total package.

On the other hand, I think that companies should be compelled to offer a license (or lack of a license) that lets you mod the hardware and run your own code until the cows come home.

They got in trouble for selling the chips and modified consoles. If they just modified the consoles in their basement no one would be knocking on their door.MeNext you were the one who chose to install those updates onto your console, they were very clear as to what would happen if you did.

You may all feel its a waste of tax payer money, but these companies are paying much more in taxes than you are as well. It is the same reason I do not throw a fit that my tax money is going to schools when I do not have any kids. As for the person complaining that there is violent crimes being commuted, have you really thought about what the world would look like if only violent crime was investigated? Because that seems a lot like what you are suggesting you want.

So are you saying that the manufacturer should have more rights to the device than the owner? And its also not really a choice if by choosing no you lose major functionality of the device. Further more, this is a victimless crime. Who exactly is being hurt? The OEM still sells consoles. The owner may never do anything illegal with the system. For instance, thousands of PS3's were bought for computing clusters alone. Shouldn't those people be allowed to modify the system if the want to?

Man, stuff like this makes me WANT the entertainment industry to go bankrupt. If I buy a console, I'll do whatever I want to it. If I pirate something, hit me for that, not for altering something that I legitimately own.

I agree completely. I hate the idea that ownership is such an outdated concept these days.

@Bigdrew172: The update was very clear on what it would do: Lose the functionality and keep playing or not lose it but you will not play new games, offline or online ever. Seems like a fair deal to me... /sarcasm

So in your world, the more you pay in taxes, the more perks you should receive? Hope you never lose your job buddy. Using tax money on services that benefit society as a whole is a good use of tax money, rather than expending it on crusades with dubious long term benefits. We have been at this for years and has there any proof of economic improvement directly associated to these efforts?

@digraph: If a system is purchased it becomes the owner's property. What you propose is what companies wish would happen. They would never sell you anything, rather you would rent the system permanently. Even then, they would never give you permission to run your own code unless it was inside a pretty little box where it could not touch anything interesting.

TechGeek, I never said they should have more rights, but still be afforded the same protection from people breaking the law.

And yes it is a chose. I admit its a shitty choice and I fully support a boycott if it bothered you enough. The system still played every game released up to that point, you will have lost access to the service they provided to you if you didn't upgrade but that service was never guaranteed. I'd be annoyed too if I was part of the homebrew community. But my point is just because they have shitty customer service and relations that they still should be afforded protection from the police.

TechGeek, I never said they should have more rights, but still be afforded the same protection from people breaking the law.

The problem is that the Digital Millennium Act is not 'the law' in the same sense that murder is against 'the law'. The DMA is a bought and still being paid-for private law that passed over public opposition and would most likely not have passed a national referendum nor Congress without the bribes.

This is bullshit - how is this any different than me buying a car - and installing after market parts on it ?

I could be using those after market parts (nitrous boosts - mod chips - etc..) to make my car break the speed limit mroe than it does naturally or I could be using those after market parts to haul something heavy from point A to B (modified wheels - modified transmission - whatever) and the factory defaults are incapable of completing the task - but the end result is cheaper than buying the high cost vehicle.

Statute of Limitations? 3 years for wrongful death, and 5 years for mod chips?

Unless i am mistaken, statute of limitations only come into effect if there has not been filed a court case yet.

Unless I missed it, the article says nothing about that they filed in 2007-2010, but that they filed NOW, and investigated then. So, any evidence more than 3 years old can be thrown out? What's left?

bigdrew172 wrote:

You may all feel its a waste of tax payer money, but these companies are paying much more in taxes than you are as well. It is the same reason I do not throw a fit that my tax money is going to schools when I do not have any kids.

A.) No, they pay a larger sum, but they are not paying a larger percentage than I am...B.) If people refused to pay taxes for education, those uneducated kids would be breaking into your house, and stealing your car every day (while their parents are all at work). I'd say that was worth paying for...YMMV.

OK? Just because it's a law (which was written by and for corporations, who bribed Congress to get them passed), doesn't mean it's right or won't be changed. Lots of things are laws that are just as inane as the DMCA.

And to think, I read an article earlier today (Yahoo News) that 22% of all Americans believe the world will end within their lifetime - and 10% believe it will be 12/21/2012 (Thanks, Mayans. You're not getting a Christmas card from me this year!).

That equaled Turkey (22%), but was above Europe (8% average). UK was lowest (article did not give rate).

Then, I read this article and think "Wow, America is stupid"... and it all fits together. Doh!

And to think, I read an article earlier today (Yahoo News) that 22% of all Americans believe the world will end within their lifetime - and 10% believe it will be 12/21/2012 (Thanks, Mayans. You're not getting a Christmas card from me this year!).

That equaled Turkey (22%), but was above Europe (8% average). UK was lowest (article did not give rate).

Then, I read this article and think "Wow, America is stupid"... and it all fits together. Doh!

Or perhaps that USA is more religious than most (not that difficult given the size and the very pronounced bible belt).

This case is complete BS. Itr was investigated years ago and then charges just files now when we are months away from these things being considered legal. I guess the IP people figured they better get their share now while the government still considers it a crime.

Relevant paragraph that all the Pro DMCA Aholes commenting on here seem to be missing -

"But defenders note that console mod chips have extensive legal uses as well, including the ability to let users run homebrew code, legal backups, and imported games on their hardware. For this reason, last year the Electronic Frontier Foundation formally requested (PDF) that the US Copyright Office exempt mod chips from DMCA enforcement, much as it has excepted "jailbroken" smartphones since 2010. A final ruling on that request is expected later this year."

So, in a little while when they make it so these mod chips are legal, in the process of them doing that, is there a way to deliberately make that legality retroactive, so that all charges and convictions made before these were made legal are rendered null and void? Probably not, but it would be SO nice if it was.

So, in a little while when they make it so these mod chips are legal, in the process of them doing that, is there a way to deliberately make that legality retroactive, so that all charges and convictions made before these were made legal are rendered null and void? Probably not, but it would be SO nice if it was.

I believe it would be up to the proper executive level (the President in this case?) to issue pardons in that situation. I am not a lawyer, but to my knowledge a criminal statute being overturned legislatively does not automatically vacate/nullify/whatever any convictions (a criminal statute ruled unconstitutional presumably would).

I'm not sure it would automatically commute the rest of their sentence, let alone clear their record.

TechGeek, I never said they should have more rights, but still be afforded the same protection from people breaking the law.

And yes it is a chose. I admit its a shitty choice and I fully support a boycott if it bothered you enough. The system still played every game released up to that point, you will have lost access to the service they provided to you if you didn't upgrade but that service was never guaranteed. I'd be annoyed too if I was part of the homebrew community. But my point is just because they have shitty customer service and relations that they still should be afforded protection from the police.

Kyle Orland / Kyle is the Senior Gaming Editor at Ars Technica, specializing in video game hardware and software. He has journalism and computer science degrees from University of Maryland. He is based in the Washington, DC area.